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GLOBAL INDUSTRIES &

INDONESIA’S CHALLENGE
Dr. Ir. Sri Bramantoro Abdinagoro, MM.

Department Metallurgy & Materials

Faculty of Engineering – University of Indonesia

2018
 Global Industries
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 Borderless :
 InCountry
 Between competitors & collaborators
 Between and in industry
 Industry will be absorb and porous
 Industry can be explain and clasified
(Myriad Ways)
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as
 Type of industry: products or services
 Value: high value-added to low value-added

 Durability: consumer durable (autos) or nondurable

(shampoo)
 Use Cycle: every time or occassionally

For Classsification, all have similarity that grow up at

global scale
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Way to be Global
 Industry size on out of domestic market
 Industrial trade ratio (exported) between 30% to 55%
 Sales persentation from overseas
 Shape to global:
 Multi-domestic
 simple global
 integrated global
 fully global
 Multi-domestic Industries to Fully Global
Industries
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Multidomestic Simple Global Integrated Fully Global

Global
Cutlery and hand tool Automobiles Engines and turbines Industrial chemicals

Structural metal Motorcycles Specialized industrial Fertilizers and pesticides

products machinery
Furniture Watches Office and computing Resins and plastics
machinery
Agricultural machinery Radio and
telecommunications
equipment
Metal and Shipbuilding
woodworking
machinery
Electrical industrial Railroad
machinery
Aircraft
Photographic and optical
goods
 Industrial Change Source
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 From outside of industries – another industries

 From inside of industries – what the other industries
do
 Industry Globalisation Analysis
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 Globalisation of Market
 Globalisation of Cost
 Globalisation of Government
 Globalisation of Competition

Yip (1995), Total Global Strategy

How to Participate in Asian Dynamism
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Become a link in the regional production network by agglomerating a particular process in Vietnam
--New products are always emerging (esp. electronics)
--MNCs are constantly looking for alternative location

Illustration
Vietnam
Parts

Assembly
Materials
China Marketing
Taiwan Parts
R&D Hong Kong
Design Thailand
Software
Japan
India
 Breaking the “Glass Ceiling”
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Creativity STAGE FOUR

Technical
Full capability in
absorption STAGE THREE innovation and
product design as
Technology & global leader
Agglomeration
STAGE TWO management
mastered, can Japan, US, EU
Have supporting produce high quality
industries, but still goods
STAGE ONE under foreign
Korea, Taiwan
Simple guidance
manufacturing Thailand, Malaysia
under foreign
guidance
Vietnam
No ASEAN countries have broken through the
invisible barrier between Stage Two & Three.
 Futures
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 High-tech Manufacturing &

Processing
 Advanced Communication Technology

 Market & Consumer Orientation

 High competitive environment

 Green and Environment Issues

 The Issues
Indonesia’s view
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 High-tech (robotics etc.) vs. Workers orientation

 HR Outsourcing

 Products Customization

 From natural resources product  services

 experiences (economy)
 Efficiency

 Innovation

 R&D
 As manager, how to anticipate the future
demands
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 Intellectual capacity and wants

 The balance of the participants

 Time commitment

 The desire to overcome the complexity

 Reviewing the future

 Creativity and Imagination